Octopus Insured ITS

Can anybody provide any insight to the Octopus Insured ITS? Namely, what the insurance is actually for?

I've come across an old plan which is now invested in FERN like the normal ITS, but there are insurance premiums being deducted each year in addition to the usual deferred AMC. It doesn't look to be insurance from an IHT point of view, or it should've stopped being paid years ago? General internet search isn't turning up much and I've called Octopus, but there's nobody there today who can help me apparently!

I'm not sure about this specific Octopus one it must be a BPR scheme if its invested in FERN.

The insurance element would probably work in one of two ways; insuring the original investment against any losses or insuring the IHT liability should death occur before the 2 year qualification period is reached. That premiums are still being paid would suggest its the former or a splendid wheeze for Octopus!

Downing currently offer both, Foresight only the latter. I'm sure there are other providers available but I can't find my Allenbridge login to find out!

I suspect it was the old Octopus plan which at outset insured against any capital losses, covering the difference between the amount invested and the value at death. Thing was, and it was long time ago so bear with me, but I believe it was originally invested in AIM in 2006/07 and portfolio values crashed by more than 60% in some cases. The insurers balked at this, the insurance had to be completely redrafted and the terms weren't as good, but still provided some cover for losses already borne. Clients were then given an option to move to the Fern model which I guess your client did.

Bingo! @TomLloyd_Read - Octopus just confirmed everything you said, although I'm still having a bit of a nightmare getting any specifics out of them! Apparently, nobody can see what the original investment amount was pre-Fern, or what monetary amount the insurance is actually covering, without doing some further digging in the archives... Watch this space!